Coinbase and Bybit Collaborate on Tokenization and Distribution of US Stocks

According to a source familiar with the plans, cryptocurrency exchange Coinbase is partnering with Bybit, a major crypto trading platform, to explore tokenization, custody, and distribution of US public and pre-IPO stocks. The discussions are ongoing and do not involve a stake acquisition, as previously reported. Bybit is indeed planning to enter the US market, but through a separate entity led by former co-CEO Helen Liu, with a local partner providing licensing and compliance. The partnership between Bybit and Coinbase is focused on a global scale, leveraging Bybit's international reach to provide users with access to tokenized US stocks. The companies are exploring synergies around custody and distribution, aiming to bring US assets to a broader market. This collaboration comes as other market players are exploring similar partnerships, with Intercontinental Exchange taking a stake in crypto exchange OKX and Deutsche Boerse investing in Kraken. Both Bybit and Coinbase declined to comment on the matter.